Escom slaps Agrekko with K3.9bn gensets fuel bill

State run power utility company, Electricity Supply Corporation of Malawi (Escom) has slapped a power generation company  Aggreko Power Solutions Limited with a K3.9 billion gen set fuel bill in a deal gone sour.

ESCOM gensets leased by Aggreko Power Solutions 

Clement Kanyama,  Escom’s director of finance says the institution has submitted the K3.9 billion reimbursement for fuel that was not consumed during the contract period.

Kanyama said the claim was submitted in July this year and Escom continues to assess the figures.

In 2017 Escom signed a deal with the private power generation company, Aggreko, to supply what it called emergency power, but the deal later was criticized with experts and members of parliament describing it as a one-sided deal against Escom.

The criticisms flared because Escom was buying fuel for Agrekko to run the diesel generators while at the same time ESCOM was buying the generated power from Aggreko.

Although National Oil Company of Malawi (Nocma) said it supplied 6.5 million litres of fuel to Escom, the state utility power company did not disclose how much it was owing Nocma.

After reviewing the deal, the new Tonse government said it would not be renewing the gen-sets deal with Aggreko saying Malawians are losing billions from the deal.

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3 years ago

My tax gone down the drain. My children have not eaten a full meal in months. Our government is just makibg falsr promise day in day out.

3 years ago

Here I was thinking Escom purchased power from Egenco and owed them Billions. Aggreko is only supplying the generators on a rental basis whether they are used or not rent is paid.

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